President Donald Trump said on Wednesday the United States would impose a 25% tariff on Indian goods starting August 1, citing New Delhi’s high tariffs and strict non-monetary trade barriers.

While dialogue continues, the imposition of tariffs marks a serious setback and reflects broader geopolitical tensions.

For the first time India has overtaken China as the No. 1 exporter of smartphones to the United States, following Apple’s tariff-driven manufacturing pivot to New Delhi.

The number of smartphones assembled in India and imported to the U.S. skyrocketed this year, accounting for 44 percent of phones imported to the U.S. in the second quarter of 2025. The total volume of smartphones made in India increased by 240 percent from last year.